TSI Divergence Indicator Download for MetaTrader4 - Free - [TF Lab] - MT4/MT5 Resources

On June 23, 2025, in version 2, the indicator added alert/notification functionality

The TSI Divergence Indicator , an oscillator in MetaTrader 4 indicator , automatically detects divergences between highs and lows .

The indicator has a curve that gives out a buy signal when below the zero line and after divergence, and a sell signal when above the zero line after divergence.

Divergence is one of the best indicators of trend reversals and can confirm correct detection of trend direction .

Indicator Table

In the image below, the chart of the currency pair USD/CAD with the symbol [USDCAD] is shown on a 15 minute time frame.

The circled points are where divergence occurs on the price chart, indicating a weakening current price trend and a potential trend reversal .

The best way to get valid signals from indicators is to combine them with support , resistance levels , and trend lines . By integrating these elements, the best way to enter a deal can be achieved.

Overview

Divergence is a reliable indicator of potential trend reversal . Combining them with classic support and resistance levels , supply and demand zones , trend lines , and channels can be very effective.

This T4 Signal and Forecast Indicator automatically and quickly detects differences in price charts, providing traders with timely insights to make informed decisions.

Uptrend Signal (Buy Signal)

In the image below, the Dow Jones Index (US30) chart is shown on a 15-minute time frame. After forming two swing lows at the end of a downtrend , the indicator light has turned blue below the zero level to detect the divergence between these two lows.

In this case, this indicates a weakening of the downtrend and the indicator has given a buy signal . Traders may consider entering a long (buy) position, considering other trade confirmations.

Downtrend signal (sell signal)

In the image below, the Dogecoin (DOGECOIN) chart is shown on a 15-minute time frame. After forming the high point uptrend at the end of the two swings , the indicator light has turned orange above the zero level to detect the divergence between the two high points uptrend .

This indicates a weakening of the uptrend and the indicator has issued a sell signal . Traders may consider entering a short (sell) position considering other trade confirmations.

TSI Divergence Indicator Settings

• True Strength Index Momentum Smoothing Period : Use the 25-period moving average to smooth the True Strength Index;
• True Strength Index Smoothing Period 2 : Additional smoothing using a 13-period moving average;
• Price : Calculation based on closing price;
• Number of candles used for pivot calculation : Set the number of candles used for pivot calculation to 8;
• Maximum distance between two pivots : The maximum distance between two pivots is 30;
• Minimum distance between two pivots : The minimum distance between two pivots is 5;
• Number of divergences from the pivot : one divergence is calculated for each pivot;
• Number of TSIs that break the boundary : TSI line breaks are identified as number 2;
• Shift : Shift is set to 2;
• Sell ​​Divergence : The color of the sell divergence signal is pink or any other color of your choice;
• Buy Divergence : The color of the buy divergence signal is blue or any other color of your choice;
• Width : The width is set to 2.

Conclusion

The TSI Divergence Indicator is suitable for trading on all timeframes, but using it on timeframes of 15 minutes or longer is recommended to minimize errors .

Furthermore, more reliable signals can be obtained by integrating them with other signals. classic and modern levels and appropriate tools.

As an experienced trader, you can incorporate divergences into your strategy to confirm the direction of the trend, regardless of your trading strategy . This versatility makes the TSI Divergence Indicator a valuable tool in different trading environments.